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A second benefit of the Nook Color/Tablet setup is the inset screen (as opposed to flush). Someone did a drop test between the kindle fire (with gorilla glass) and the Nook Tablet (without). The Nook Tablet's screen survived unscathed, the fire's busted. Easier to hold in the first place, less likely to die in a fall if it slips.
Like you, pixel density was pretty big concern of mine, so after a week or so of reading off the Nook Tablet's screen (160ish ppi), I sent it back, initially to wait for the Nexus 7 (213ish ppi) back before it lost the sd slot and hdmi port, and finally I got this (224ish ppi). Anything over 200ppi is probably fine for me, but I definitely don't want to read off another 160ppi screen.
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